Retailers had a brutal 2019, and while predictions for 2020 were similarly grim, they didn't include the coronavirus. A massive number of companies have waved the white flag as COVID-19 wreaks havoc on not just retail, but other parts of the global economy — and 2021 is unlikely to be much better. Here are some of the most prominent Rancho Cordova companies to hire abankruptcy attorney since mid-March of 2020, and a slew of big names that are at risk of following in the new year.
Losing your job due to a layoff means one crucial thing—there’s less money to pay the bills. No matter how much effort you put into turning down the thermostat or eating in, such measures rarely stop the pile of unpaid debt from accumulating.
Fortunately, local, state, and federal governments, along with many creditors, are working hard to provide safety nets during the COVID-19 crisis. And for many, cash payments and increased unemployment benefits will do the trick—especially when coupled with the mandated holds placed on evictions and utility shut-offs in many areas.
For small businesses struggling to survive during the coronavirus crisis, bankruptcy may end up beckoning.
While overall filings were down in April, the number of businesses that filed Chapter 11 bankruptcy — which involves reorganizing debt and remaining in operation — jumped 26% from a year earlier. And according to some experts, it won’t be too long before the floodgates open to expose a glut of small firms seeking relief.
“All I’m doing all day long is fielding calls from businesses with anywhere from $25 million in revenue down to $50,000 and operating out of their house,” said Charles Bullock, a bankruptcy attorney and a founder of Stevenson & Bullock in Southfield, Michigan.
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